CID: Long-Term Care Rate Filing - Lincoln Benefit Life Company (Individual)

Long-Term Care Rate Filing - Lincoln Benefit Life Company (Individual)



Rate request: 50 percent

Decision: Disapproved, limited increase to 25 percent on 12/20/2016

On November 9, 2016, Lincoln Benefit Life Company requested a 50 percent increase on a block of business of individual long-term policies which were sold from 1998 to 2002.

The products known as Senior Linc policies are no longer being marketed. There are 46 policies in force in Connecticut.

The company said in its filing that the increase is needed because there are more policies in effect than expected. As a result, over the life of these polices the expected demand for benefits and the higher cost of those benefits exceed original pricing expectations.

Unlike medical health insurance with premiums set to cover expenses incurred only during the upcoming policy year, long term care premiums are set to cover expenses that are not expected to occur until a distant date, sometimes 20 years in the future.

After an actuarial review the Department determined that the company’s block of business in Connecticut performing worse than expected from one the product was originally priced. However, the company’s nationwide business is performing better. As a result, the Department disapproved the initial increase request of 50 percent and instead approved a lower average increase of 25 percent on December 20, 2016.

Per state law, any increase of 20 percent or more must be phased in over three years. The company said it would offer its customers a variety options to change benefits in order to mitigate the impact of any increase.


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Find the filing documents here at Long-Term Care Insurance Rate Filing


Content Last Modified on 12/21/2016 9:56:57 AM